CP

The combination of the one-time cash inflow and the long-term improvement in working capital can add substantial value to compan ...

586 CHAPTER 16 Working Capital Management The Best at Managing Working Capital What do Boeing, Ford, Gillette, Coca-Cola, Herman ...

cash flow, and value. The following sections discuss the individual components of NOWC. Identify and explain three alternative w ...

588 CHAPTER 16 Working Capital Management In addition to holding cash for transactions, precautionary, and compensating bal- anc ...

TABLE 16-2 MicroDrive Inc.: Cash Budget (Millions of Dollars) May Jun Jul Aug Sep Oct Nov Dec I.COLLECTIONSANDPURCHASESWORKSHEET ...

590 CHAPTER 16 Working Capital Management gives the sales forecast for the period from May through December. (May and June sales ...

MicroDrive will have $15 million on hand on July 1. The beginning cash balance (Line 17) is then added to the net cash gain or l ...

592 CHAPTER 16 Working Capital Management Cash Management Techniques Most business is conducted by large firms, many of which op ...

about two days, but mail delays can slow down things on each end of the Fed’s in- volvement in the process. Using Float Floatis ...

594 CHAPTER 16 Working Capital Management Inventory Inventory management techniques are covered in depth in production managemen ...

that make them to the final assembly line. The net effect: Inventories fell nearly 40 percent even as sales increased by 30 perc ...

596 CHAPTER 16 Working Capital Management Receivables Management Firms would, in general, rather sell for cash than on credit, b ...

day, accounts receivable will be $1,000; they will rise to $2,000 by the end of the sec- ond day; and by January 10, they will h ...

598 CHAPTER 16 Working Capital Management financed in some manner, but (3) that the entire amount of receivables does not have t ...

Note also that its DSO, or average collection period, is a measure of the average length of time it takes Super Sets’s customers ...

600 CHAPTER 16 Working Capital Management begins to show an increasing percentage of past-due accounts, then the firm’s credit p ...

firms: Because small companies often do not qualify for financing from other sources, they rely especially heavily on trade cred ...

602 CHAPTER 16 Working Capital Management build up its cash account, to pay off debt, to expand inventories, or even to extend c ...

The costs of the additional trade credit from forgoing discounts under some other purchase terms are shown below: As these figur ...

604 CHAPTER 16 Working Capital Management zero — companies have some permanent NOWC,which is the NOWC on hand at the low point o ...